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Dividend Taxes
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Definition of Dividend Taxes: A dividend tax is simply a tax the government levies on shareholders of a corporation when that corporation distributes a dividend. Normally a dividend tax is a percentage of the total dividend issued. If there is a 20% dividend tax, and a corporation distributes a dividend of $1.00 per share, then an investor who holds stock in the company is forced to pay 20 cents for each share he owns in the company.

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